As Baltic Dry Index Continues To Fall, The World Is Getting Smaller
The Baltic Dry Index, which measures dry bulk shipping rates on 40 routes across the world, sank to 700 points Monday. The index has plummeted 94% from its all-time record high of 11,793 points late May.
The collapse is said to be a result of the financial crisis, a dispute between Chinese steel mills and Brazilian ore producers and slowing economic demand.
"The sudden and extreme lack of demand for freight has left everybody stunned," said a spokesman for the Baltic Exchange.
It now costs less to ship goods across the world than at any time since 1986.
Reuters report that "the average time-charter rates on four top export routes traded under $3,000 per day last week for Capesize merchant ships, the largest class of vessel. That compared with around $234,000 per day in June."
This really does make the world a level playing field.
The collapse is said to be a result of the financial crisis, a dispute between Chinese steel mills and Brazilian ore producers and slowing economic demand.
"The sudden and extreme lack of demand for freight has left everybody stunned," said a spokesman for the Baltic Exchange.
It now costs less to ship goods across the world than at any time since 1986.
Reuters report that "the average time-charter rates on four top export routes traded under $3,000 per day last week for Capesize merchant ships, the largest class of vessel. That compared with around $234,000 per day in June."
This really does make the world a level playing field.
